eBay

alecia3220 · ‎12-18-2021

I recently noticed I am being charged Final Value Fees on the sales tax amount. I've been looking across the internet trying to find if this is legal in all 50 states. But nothing conclusive. tyler@ebay was the original poster of my screenshot. So Tyler (or anyone else how had knowledge of this) is it now legal for eBay to charge a final value fee on taxes in every single state? If so, can you please provide proper documentation so I can verify the accuracy of this. Or if anyone can point me in the right direction of where to find this information. I have a friend with a pretty big time lawyer, that goes after big companies, like eBay, and was considering reaching out on Monday to see if this is indeed legal. I did find information showing that it was legal in SOME states back in 2019 but I have found NOTHING showing it is legal in every state. Yet, I am being charged a final value fee on every transaction, which includes many states that I have not been able to find anything stating it is legal. I want to contact the lawyer anyways just to confirm because I am sure anyone that works for eBay will just cover for them. Another reason I want to seek legal counsel is regarding my listings being wrongfully removed. eBay has even provided reasons as to why they were removed that were down right lies. Some of the policies they said I had broken didn't even make sense at all. For example, saying my listing was reported for breaking the Vero policy yet they didn't even have the right company listed and yes I did the research. The company they listed doesn't even represent the brand of the product that was removed. Therefore, their reasoning isn't plausible at all, but I digress. I am just looking for info on the fees on taxes. Thanks in advance.

Alecia 💕

this*old*attic · ‎12-18-2021

FVF on taxes - Yes. Good luck with that lawyer.

Vero - EBay must pull down items when a Vero member claims rights. Your fight is with the Vero member, not EBay. Look up user Tabblerone and Doctrine of First Sale (someone will come along and make this clearer, it’s been 10 years or more since I looked over her website)

computeraidllc · ‎12-18-2021

You probably don't realize this but you are charged a final value fee on what is collected from the buyer. This is the same as what happens when you use a card in Walmart or Target or any physical store. The brick and mortar store gets charged on the total amount the buyer paid this includes sales tax. This is because the payment processor is charged from Visa, Mastercard, AMEX or Discover on the amount they processed.

This is also the case when you had PayPal. But back then most sellers were not setup to collect tax in all states. They were only setup to collect tax in a state they had a physical presence in.

So eBay isn't do anything illegal as the fee is something that all payment processors do. Even the bank does this when a debit card is used. Debit card fees are set from the federal government and it is on the amount the buyer paid this includes shipping and tax.

annadryl · ‎12-18-2021

It's in the basic selling documentation> https://www.ebay.com/help/selling/fees-credits-invoices/selling-fees?id=4822#section2

k33dd4nch · ‎12-19-2021

Yes, but we are not paying just the payment processing fee % on entire amount collected from the buyer (as is the case with your credit card at Walmart or Target example), we are paying that (2.55% or whatever it is considered to be) PLUS eBay final value fees on the sales tax. A final value fee is supposed to be eBay's "cut" of the sale price of the item. eBay collects sales tax, not the seller, at no time is the seller collecting or in possession of the sales tax portion of what eBay charges the buyer.

I could understand the full amount paid by the buyer being subject to payment processing percentage fee (even though I don't agree with that either), but on the final value fee for the sale/purchase price of the item?

It's an outrage. eBay needs a class action lawsuit that costs them tens of billions. Maybe then they will get a clue.

forward-motion · ‎12-19-2021

Every seller has one question to ask themselves. Can I make money after all expenses?

If you think the seller is the one paying the fees and not the buyer, you are doing it wrong.

soh.maryl · ‎12-19-2021

eBay collects state sales tax on purchases, as required by law, for about 45 or so states. eBay does not keep that money. eBay is required, again, by law, to remit those funds to the appropriate state treasury. The state sales tax for every buyer is based on the buyer's delivery address.

A seller's final value fee on eBay is based on the item price, the shipping cost and the state sales tax paid by the buyer, if applicable. Plus 30 cents.

Feel free to work on that class action lawsuit but be aware that you will be claiming something to be illegal when it isn't.

justafemster · ‎12-19-2021

We all pay the FVF on the total sale, including shipping, tax and the selling price of the item, plus a $0.30 fee.

We did the same with paypal, why is this suddenly an issue?

soh.maryl · ‎12-19-2021

And, not that it matters much, but it isn't an "internet sales tax".

It's state sales tax, is charged in more than 40 US states on any retail purchase including those when you shop at WalMart.

powell-memorabilia · ‎12-19-2021

Please tell your “big time lawyer” that he can only charge you a percentage on what you win in actual damages - those billions in punitive damages are all for you.

if he disagrees, find a double-big lawyer to make him change his mind.

laststopgeneralstore · ‎12-19-2021

If you would rather take that sales tax and hold it and file all of the paperwork yourself to remit to every single state that you sell to and make sure you keep record of it, be my guest. eBay is doing all of that work for you via charging a fvf on the sales tax.

luckythewinner · ‎12-19-2021

I've been looking across the internet trying to find if this is legal in all 50 states.

Have you looked across the internet and found that credit card companies have been charging fees on sales tax in all 50 states for over 50 years?

I want to contact the lawyer anyways just to confirm

If this lawyer is your friend, you could have send him this post in an email in the same time that it took to write this post.

tdrake · ‎12-19-2021

Bottom line is, the "FVF" on the value of the tax collected is not a fee on the tax, it's a fee for collecting the money on your behalf from the buyer and passing it along to the party owed. The fee happens to be calculated by the amount collected.

IF I was to go to city hall to pay my taxes and I want to use a credit card, they will charge me for the processing fees to get the tax money from the credit card company on top of the taxes.

IF I have a B&M store and I take credit cards, my bank will charge me a fee based on the % they process for me, plus maybe a per month or per transaction charge, depending.

aka COST of DOING BUSINESS

maxine*j · ‎12-19-2021

Every payment processor takes its fee based on the TOTAL amount the buyer paid -- for the merchandise, handling, shipping, surcharges, sundry costs, and sales tax. It has been that way since the invention of the credit card.

PayPal did, too, of course, and with the transaction fee it also charged on each sale, the total take-out on any given sale was about the same as it is under Managed Payments.

When you speak to the lawyer, be sure to show him the User Agreement you signed with eBay, with special attention to Section 18 (Legal Disputes):

https://www.ebay.com/help/policies/member-behaviour-policies/user-agreement?id=4259

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maxine*j · ‎12-19-2021

@k33dd4nch wrote:

... It's an outrage. eBay needs a class action lawsuit that costs them tens of billions. Maybe then they will get a clue.

It is admirable that you have the courage of your convictions and are willing to spend your time and money to take legal counsel over this matter.

When you consult a laywer about bringing a class action lawsuit, be sure to show him the User Agreement you signed, with special reference to Section 18 (Legal Disputes), subsection B. 1:

https://www.ebay.com/help/policies/member-behaviour-policies/user-agreement?id=4259#18

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